LKQ Corporation (LKQ)
Current ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,868,000 | 5,286,000 | 6,156,000 | 4,623,000 | 4,258,000 | 4,202,000 | 4,331,000 | 4,682,000 | 4,254,000 | 4,259,400 | 4,168,530 | 4,453,950 | 4,034,030 | 4,102,510 | 4,106,970 | 4,442,660 | 4,687,820 | 4,483,860 | 4,631,850 | 4,644,770 |
| Total current liabilities | US$ in thousands | 3,318,000 | 3,559,000 | 3,028,000 | 2,412,000 | 2,271,000 | 2,351,000 | 2,485,000 | 2,495,000 | 2,165,000 | 2,322,260 | 2,278,160 | 2,436,630 | 1,988,490 | 1,926,500 | 1,949,770 | 1,938,970 | 2,178,510 | 2,054,050 | 2,106,950 | 1,971,490 |
| Current ratio | 1.47 | 1.49 | 2.03 | 1.92 | 1.87 | 1.79 | 1.74 | 1.88 | 1.96 | 1.83 | 1.83 | 1.83 | 2.03 | 2.13 | 2.11 | 2.29 | 2.15 | 2.18 | 2.20 | 2.36 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,868,000K ÷ $3,318,000K
= 1.47
The current ratio of LKQ Corp has been fluctuating over the past eight quarters. In Q2 of 2023, the company reported a current ratio of 2.03, indicating a significant increase from the previous quarters. This suggests that the company had more than enough current assets to cover its current liabilities during that period.
In general, the current ratio has been relatively healthy, staying above 1.5 in most quarters, which implies that the company has sufficient current assets to meet its short-term obligations. However, there was a slight dip in Q4 of 2022 with a current ratio of 1.87, but it remained above the benchmark of 1.
Overall, LKQ Corp's current ratio indicates that the company has been maintaining a strong liquidity position, with the ability to meet its short-term financial obligations efficiently. However, it is important to continue monitoring the current ratio to ensure the company's liquidity remains stable in the future.